CPSE ETF Further Fund Offer (FFO) Managed by Reliance Nippon Life - - PowerPoint PPT Presentation

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CPSE ETF Further Fund Offer (FFO)

Managed by Reliance Nippon Life Asset Management Limited (formerly Reliance Capital Asset Management Limited) (An Open-ended Index Exchange Traded Scheme) (Rajiv Gandhi Equity Savings Scheme (RGESS) Qualified Scheme)

For Anchor Investors For Non Anchor Investors FFO Opens on January 17, 2017 January 18, 2017 FFO Closes on January 17, 2017 January 20, 2017

Offer of Units of Rs. 10/- each (i.e. face value) for cash (on allotment, the value of each Unit would be approximately 1/100th of the value of Nifty CPSE Index) to be issued at a premium, if any, approximately equal to the difference between face value and FFO Allotment Price during the Further Fund Offer (“FFO”) and at NAV based prices thereafter. For the existing CPSE ETF the Ongoing Offer Period for the Scheme commenced on April 04, 2014.

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

Introduction to Exchange Traded Funds (ETFs)



Development of International & Indian ETFs Market



Advantages of ETF



Nifty CPSE Index



CPSE ETF - Overview



CPSE ETF FFO

Table of Contents

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Introduction to Exchange Traded Funds (ETFs)

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Introduction to Exchange Traded Funds (ETFs)

An Exchange Traded Fund (ETF) is primarily a mutual fund scheme which is listed and traded on a stock exchange. An ETF can invest in:



Equities – replicating the composition and performance of an equity index (e.g. Nifty 50 Index, Nifty Next 50 Index)



Commodities – tracking the actual price of a commodity (e.g. Gold)



Money market instruments – which include short-term government securities and call money



Debt Instruments - Government securities with long maturity

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Development of International & Indian ETFs Market

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Growth of ETFs Internationally

• AUM in USD Billion. Source: ETFGI Monthly Newsletter Nov 2016.

6 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Nov- 16 AUM* 74 105 142 212 310 416 579 806 716 1041 1313 1355 1754 2254 2643 2871 3287

• No. of ETFs

94 208 283 288 334 440 719 1132 1614 1961 2473 3022 3334 3591 3966 4430 4791 500 1000 1500 2000 2500 3000 3500 4000 4500 5000 500 1000 1500 2000 2500 3000 3500

• No. of ETFs

AUM $ Billion

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Growth of ETFs in India

Source : MFI Explorer *Average AUM for the Quarter. ** Month end AUM (For other periods AUM is Average AUM for Month).

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Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec- 10* Dec- 11* Dec- 12* Dec- 13* Dec- 14* Dec- 15** Nov- 16** AUM 7 168 568 2920 7811 7142 2671 2410 4981 10852 13380 10959 12677 17622 31118 No of ETFs 1 5 6 6 6 12 16 18 26 33 34 39 45 57 63

• 5

5 15 25 35 45 55 65 5,000 10,000 15,000 20,000 25,000 30,000 35,000

• No. of ETFs

AUM (Rs. in Crores)

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Advantages of ETF

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Familiar ground – best of both worlds



Like a stock…

• Trading flexibility intraday on the

exchange

• Real time price
• Put limit orders
• Minimum trading lot is just 1 unit
• Delivery into your Demat account

ETF

Index fund Stocks



Like a fund…

• Constructed to track an index
• Open ended mutual fund
• Lower expense ratio generally as

compared to an active equity fund

• Lower turnover
• More transparent

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Why invest via an ETF?

Liquidity



Components of an index have more liquidity



ETF liquidity enhanced via direct creation and redemption Increased transparency



Investors can generally see an ETF composition at any given time



Transaction and management cost Increased trading flexibility



Continuous pricing on the exchange throughout market hours



Minimum transaction size (1 unit) Return potential



Likely to capture market average return at low cost Lower expenses



Benefit from lower expense ratios due to lower portfolio management, trading and operational expenses

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Nifty CPSE Index

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GAIL (India)

Constituents of the Nifty CPSE Index

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Nifty CPSE Index is constructed in order to facilitate Government of India initiative to disinvest some of its stake in selected CPSEs (Central Public Sector Enterprises) through the ETF route. The index values are to be calculated on free float market capitalization methodology. The index has base date of 01-Jan-2009 and base value of 1000. Weights of index constituent shall be re-aligned (i.e. capped at 25%) every quarter effective 2nd Monday of February, May, August and November. Selection Criteria: The 10 CPSE’s selected meet below mentioned parameters:



Included in the list of CPSEs published by the Department of Public Enterprise



Listed at National Stock Exchange of India Ltd. (NSE)



Having more than 55% government holding (stake via Govt. of India or President of India) under promoter category.



Companies having average free float market capitalization of more than Rs.1000 Cr. for six month period ending June 2013 are selected.



Have paid dividend of not less than four per cent including bonus for the seven years immediately preceding or for at least seven out of the eight or nine years immediately preceding are considered as eligible companies as on cut-off date i.e. 28-Jun-2013.

About the Nifty CPSE Index

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Nifty CPSE Index Vs Other Broad Indices - Valuations

Data as 30th Dec 2016. Source : www.nseindia.com

Index Name P/E Ratio P/B Ratio Dividend Yield (%) Nifty CPSE Index 11.44 2.00 4.07 Nifty 50 Index 21.93 3.10 1.35 Nifty Next 50 Index 25.14 3.29 1.69 Nifty 100 Index 22.4 3.13 1.4 Nifty 500 Index 25.3 2.82 1.32

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Please note that the stock composition of all the indices are different

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CPSE ETF - Overview

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

Government of India (GOI) used innovative route to divest its holding in CPSEs via ETF



New Fund Offer (NFO) was first launched in March 2014



NFO received overwhelming response; NFO collection was Rs.4,363 Crs, out of which Rs.1,363 Crs was refund to investors due to limited issue size of Rs.3,000 Crs



Participation across various categories of investors



Units of CPSE ETF were listed on 04th April 2014 on NSE & BSE

CPSE ETF - Background

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

Investment objective

The investment objective of the Scheme is to provide returns that, before expenses, closely correspond to the total returns of the Securities as represented by the Nifty CPSE Index, by investing in the Securities which are constituents of the Nifty CPSE Index in the same proportion as in the Index. However the performance of the Scheme may differ from that of underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of the Scheme would be achieved. 

Investment pattern



Type of scheme

An Open Ended Index Scheme, listed on the Exchanges in the form of an Exchange Traded Fund (ETF) tracking Nifty CPSE Index 

RGESS

The Scheme is in compliance with the provisions of Rajiv Gandhi Equity Savings Scheme, 2013 (‘RGESS’)

CPSE ETF – Scheme Details

Instruments Indicative Allocation (% of net assets) Risk Profile Minimum Maximum Securities covered by Nifty CPSE Index 95% 100% Medium to High Money Market Instruments (with maturity not exceeding 91 days), including CBLO, cash & cash equivalents. 0% 5% Low to Medium

The above stated percentages are indicative and not absolute.

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CPSE ETF – Performance as on Dec 30, 2016

*Based on current value of standard investment of Rs. 10,000 made at inception.

Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Since

inception returns (wherever provided) is computed on Compounded Annualized Growth Returns (CAGR) basis. For Scheme(s) which has completed more than 3 years, point to point returns for twelve month periods for last 3 years is provided basis the last day of the calendar quarter and are computed on absolute basis. In case the scheme(s) which is in existence for more than 1 year but less than 3 years, point to point returns is provided for as many period as possible, such period being counted from the last day of the calendar quarter and are computed on absolute basis. Dividends (if any) are assumed to be reinvested at the prevailing NAV. Bonus (if any) declared has been adjusted. Performance of the scheme would be Net of Dividend distribution tax, if any. Face value of scheme is Rs. 10/- per unit. In case, the start/end date of the concerned period is non-business day (NBD), the NAV of the previous date is considered for computation of returns. B: Benchmark, AB: Additional Benchmark, #TR Index- Total Returns Index reflects the returns on the index arising from (a) constituent stock price movements and (b) dividend receipts from constituent index stocks, thereby showing a true picture of returns.

For performance of other schemes managed by the fund manager please refer performance slides at the end

18 Period NAV Per Unit (Rs.) CPSE ETF B:Nifty CPSE Index TR: Nifty CPSE TR Index# AB: Nifty 50 Index Dec 31, 2015 to Dec 30, 2016 21.5576 17.43 12.89 17.45 3.01 Dec 31, 2014 to Dec 31, 2015 25.1491

• 14.28
• 17.03
• 14.48
• 4.06

Dec 31, 2013 to Dec 31, 2014

• Since Inception (March 28, 2014)

CAGR (%) 17.4504 14.42 6.26 9.28 7.55 Point to Point (INR)* 14,507 11,826 12,780 12,225 NAV as on Dec 30, 2016: Rs 25.3145

CPSE ETF (CPSEETF)

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CPSE ETF – Portfolio & Industry Allocation

CPSE ETF Portfolio No. Company Name Industry Weightage % 1 Oil & Natural Gas Corporation Limited Oil 24.35 2 Coal India Limited Minerals/Mining 20.54 3 Indian Oil Corporation Limited Petroleum Products 17.96 4 GAIL (India) Limited Gas 11.17 5 Power Finance Corporation Limited Finance 5.58 6 Rural Electrification Corporation Limited Finance 5.21 7 Container Corporation of India Limited Transportation 5.04 8 Bharat Electronics Limited Industrial Capital Goods 4.33 9 Oil India Limited Oil 3.39 10 Engineers India Limited Construction Project 2.26 Total 99.83 Note: Portfolio & industry allocation data as on December 31, 2016. Source: RMF website

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27.74% 20.54% 17.96% 11.17% 10.79% 5.04% 4.33% 2.26% 0% 5% 10% 15% 20% 25% 30% Oil Minerals/Mining Petroleum Products Gas Finance Transportation Industrial Capital Goods Construction Project

Industry Allocation %

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CPSE ETF FFO

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

Play on India growth story through investment in the large CPSE stocks at attractive valuations



Portfolio diversification through investment in blue-chip Maharatna and Navaratna CPSE stocks which are sector leaders



FFO price advantage – Upfront discount to all categories of investors



Attractive Valuation and Dividend Yields: P/E ratio and dividend yields better compared to broader market index (Refer Index Valuation slide)



Flexibility of trading on real time basis



Lower expense ratios and transaction costs



Investors will be able to diversify exposure across a number of Public Sector companies through a single instrument

CPSE ETF FFO – Investment Rationale

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CPSE ETF – FFO details

Scheme Features

For Anchor Investors For Non Anchor Investors

FFO Opens on January 17, 2017 January 18, 2017 FFO Closes on January 17, 2017 January 20, 2017 Benchmark Index

Nifty CPSE Index

Pricing

1/100th of Nifty CPSE Index

Fund Manager

Payal Wadhwa Kaipunjal

Load Structure

Entry & Exit Load : NA & NIL (Refer Note # 1 )

Category of Investors (during FFO) (Refer Note # 2 )

• Retail Individual Investor
• Qualified Institutional Buyers or QIB
• Non Institutional Investors
• Anchor Investors

Minimum application amount (during FFO)

(Refer Note # 3 )

Retail Individual Investor: Minimum amount of Rs 5,000 and in multiples of Re. 1 thereafter Non Institutional Investors / QlB Minimum amount of Rs. 2,00,001/- and in multiples of Re 1/- thereafter For Anchor Investor: Minimum amount of Rs.10 Crores and in multiples of Re. 1 thereafter

Minimum application amount (during ongoing offer period)

(Ongoing Offer commenced on April 04, 2014.)

Directly with the Mutual Fund: Create / Redeem in exchange of Portfolio Deposit and cash component in Creation Unit Size of 1 lakh units of the Scheme. On the Exchange: 1 (one) Unit and in multiples thereof.

Plans

Growth

Listing

FFO Units offered pursuant to the FFO, listed on NSE and BSE on or before February 10, 2017. However Units of the existing CPSE ETF Scheme were listed on 04th April 2014 on NSE & BSE.

Maximum Amount to be Raised during FFO (Refer Note # 4 )

• Rs. 6,000 crores

Discount Offered by GOI (Refer

Note # 5 )

Discount of 5 (five) % on the “FFO Reference Market Price” of the underlying shares of Nifty CPSE Index shall be

• ffered to FFO by GOI. (Refer illustration on next slide)

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Discount offered by GOI to FFO contd…

Illustration of “FFO Reference Market Price”– assuming 5% discount.

Full day volume weighted average price (VWAP) on the NSE will be considered during the Non Anchor Investor FFO Period for each of the constituents of the Index, namely stock A, stock B and stock C :

Non Anchor FFO Period Full day VWAP on NSE Stock A (Rs.) Full day VWAP on NSE Stock B (Rs.) Full day VWAP on NSE Stock C (Rs.) Day 1 (FFO Opens) 10 21 50 Day 2 11 24 53 Day 3 12 26 52 Day 4 12 25 54 Day 5 (FFO Closes) 11 24 55 Average of full day VWAP (Rs.) for the above period 11.2 24 52.8 Discount offered by GOI to the FFO of the Scheme on the average of full day VWAP 5% 5% 5% Discounted price at which the Scheme would purchase the stocks from the GOI out of the FFO Proceeds 10.64 22.8 50.16 Closing market price of the relevant stock on the NSE

• n the FFO Allotment Date

9 24 45

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CPSE ETF – Mechanism

All Investors Reliance Mutual Fund Government of India

Cash Cash Basket of Stocks CPSE ETF Units

During Further Fund Offer

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CPSE ETF – Mechanism

During Ongoing Offer

Secondary market Seller Stock Exchange

CPSE ETF Units Cash Cash CPSE ETF Units

Primary market Authorized participants / financial institutions

Buy / sell Market making / arbitrage

Buyer Reliance Mutual Fund

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Subscription/ redemption in-kind

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Notes

1.

Payment of Transaction Charges – For applications received during the FFO Period, the AMC/ Mutual Fund may deduct transaction charges of ₹ 150 (Rupees One Hundred and Fifty) (for first time investors across mutual funds) or ₹ 100 (Rupees One Hundred) (for existing investors across mutual funds) from the Subscription amount, which would be paid to the empanelled AMFI registered Distributor / agent of the Investor (in case the empanelled AMFI registered Distributor / agent has “opted in” to receive the transaction charge for this type of product) and the balance amount shall be invested in the Scheme. Please refer to Section IV (C) (Transaction Charges) of the Supplement to SID for further details.

2.

Retail Individual Investors: Individual Investors (including HUFs applying through their Karta’s and NRIs) who have applied for FFO Units for an amount not exceeding ₹ 2,00,000 (Rupees Two lakhs). Non Institutional Investor : All investors who are not Qualified Institutional Buyers or Retail Individual Investors and who have applied for the Units for an amount more than ₹ 2,00,000 (Rupees Two Lakhs). Qualified Institutional Buyers: Qualified Institutional Buyers as defined under Regulation 2(1)(zd) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended. Anchor Investor - A Qualified Institutional Buyers, applying under the Anchor Investor Portion, with a minimum application amount of ₹ 10 Crores (Rupees Ten Crores). Refer to Multiple Applications by Same Investor under Section III (A) of Supplement to SID.

3.

Anchor Investor Portion: The portion not exceeding 30% of the Maximum Amount to be Raised (if any) shall be available for allocation to Anchor Investors on a proportionate basis. In case of under Subscription in this category, the under subscribed portion will be available for spill-over from the Retail Individual Investor Portion at the discretion of the AMC. If even after the spill-over from the Retail Individual Investor Portion, the Anchor Investor Portion remains under subscribed, then the balance shall be met by spillover from the Qualified Institutional Buyers & Non Institutional Investor Portion. But any under-Subscription in the Retail Individual Investor Portion and Qualified Institutional Buyers & Non Institutional Investor Portion will not be allowed to be met by any spill-over from the Anchor Investor Portion. Retail Individual Investor Portion: Atleast 70% of the Maximum Amount to be Raised (if any) plus any under subscribed portion

• f Anchor Investor, shall be available for allocation to Retail Individual Investors on a proportionate basis in the manner set out in

the Supplement at the discretion of the AMC. In case of under Subscription in this category, the under subscribed portion of this category as well as Anchor Investor category will be available for allocation to Qualified Institutional Buyers & Non Institutional Investor Portion.

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Notes

Qualified Institutional Buyers & Non Institutional Investor Portion: Upto 100% of the residuary portion available (if any) from Maximum Amount to be Raised (if any) following any under-subscription of the Retail Individual Investor Portion (which includes any under-subscription of the Anchor Investor Portion) shall be available for allocation to Qualified Institutional Buyers and Non Institutional Investors on a proportionate basis in the manner set out in the Supplement. Allocation will be made to this category only to the extent of any under subscription in the Retail Individual Investor Portion which would also include any under subscription of Anchor Investor portion. If Retail Individual Investor Portion is oversubscribed, then no allocation will be made to Qualified Institutional Buyers and Non Institutional Investors. Under this category, the allocation will be first made to provident funds / superannuation funds / gratuity funds / pension funds who have applied under QIBs on a proportionate basis in the manner set out in the Supplement at the discretion of the AMC & residuary portion available (if any) post allocation to provident funds / superannuation funds / gratuity funds / pension funds will be available for allocation to Qualified Institutional Buyers (other than provident funds / superannuation funds / gratuity funds / pension funds) and Non Institutional Investors on a proportionate basis in the manner set out in the Supplement at the discretion of the AMC.

4.

Maximum Amount to be Raised (if any):

• Rs. 6,000 Crores [(“Initial Amount” – Rs. 4,500 Crores plus “Additional Amount” – Rs. 1,500 Crores which is in addition to the stated

“Initial Amount”) (“Initial Amount” plus “Additional Amount” to be collectively called as “Maximum Amount to be Raised”)]. Please note in accordance with the instructions of the GOI, the AMC may choose not to offer entire Additional Amount or part of the Additional Amount to investors for subscription through FFO, even though the subscriptions received from all the categories of investors to subscribe FFO units would be over and above the Initial Amount or even the Maximum Amount to be Raised as stated

• above. For more details refer supplement to SID.

5.

Discount Offered by GOI: Discount of 5 (five) % on the “FFO Reference Market Price” of the underlying shares of Nifty CPSE Index shall be offered to FFO by GOI. FFO Reference Market Price: The price determined based on the average of full day volume weighted average price (VWAP) on the NSE during the Non Anchor Investor FFO Period (inclusive of Non Anchor Investor FFO Period open as well as close date) for each of the index constituents of the Nifty CPSE Index. Note - Discount on the ‘FFO Reference Market Price’ may not be a discount to the closing market price of the underlying shares of Nifty CPSE Index on the FFO Allotment Date.

6.

FFO Units will rank pari-passu to the existing Units of the CPSE ETF.

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Performance – Other Schemes Managed by Fund Manager

Performance as on 30 Dec 2016 28 Period NAV Per Unit (Rs.) NIFTYBEES B:Nifty 50 Index Nifty 50 TR Index AB: Nifty 50 Index

Dec 31, 2015 to Dec 30, 2016 803.8633 3.92 3.01 4.39 3.01 Dec 31, 2014 to Dec 31, 2015 837.9076

• 3.20
• 4.06
• 3.01
• 4.06

Dec 31, 2013 to Dec 31, 2014 638.5564 32.63 31.39 32.90 31.39 Since Inception (December 28, 2001) CAGR (%) 104.3927 15.95 14.77 16.44 14.77 Point to Point (INR)* 92,280 79,182 98,363 79,182

Period NAV Per Unit (Rs.) JUNIORBEES B:Nifty Next 50 Index Nifty Next 50 TR Index AB: Nifty 50 Index

Dec 31, 2015 to Dec 30, 2016 200.8570 7.21 7.07 8.41 3.01 Dec 31, 2014 to Dec 31, 2015 187.6061 7.06 6.96 8.05

• 4.06

Dec 31, 2013 to Dec 31, 2014 130.7076 44.67 44.42 46.35 31.39 Since Inception (February 21, 2003) CAGR (%) 142.7852* 21.93 21.73 23.37 15.84 Point to Point (INR)* 156,348 152,817 184,132 76,779

Period NAV Per Unit (Rs.) BANKBEES B:Nifty Bank Index Nifty Bank TR Index AB: Nifty 50 Index

Dec 31, 2015 to Dec 30, 2016 1705.0164 7.79 7.42 8.47 3.01 Dec 31, 2014 to Dec 31, 2015 1890.5236

• 9.20
• 9.68
• 8.95
• 4.06

Dec 31, 2013 to Dec 31, 2014 1152.0125 65.60 64.57 66.16 31.39 Since Inception (May 27, 2004) CAGR (%) 253.5576 17.98 16.94 18.54 13.91 Point to Point (INR)* 80,349 71,859 85,327 51,600 NAV as on Dec 30, 2016: Rs 835.3752

R*Shares Nifty BeES (NIFTYBEES) R*Shares Bank BeES (BANKBEES) R*Shares Junior BeES (JUNIORBEES)

NAV as on Dec 30, 2016: Rs 1837.8505 NAV as on Dec 30, 2016: Rs 215.3441

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Performance – Other Schemes Managed by Fund Manager contd.

Performance as on 30 Dec 2016 29 Period NAV Per Unit (Rs.) PSUBNKBEES B:Nifty PSU Bank Index Nifty PSU Bank TR Index AB: Nifty 50 Index

Dec 31, 2015 to Dec 30, 2016 317.3098 4.41 4.11 5.06 3.01 Dec 31, 2014 to Dec 31, 2015 467.0154

• 32.06
• 32.91
• 32.00
• 4.06

Dec 31, 2013 to Dec 31, 2014 275.5775 69.47 67.07 69.87 31.39 Since Inception (October 25, 2007) CAGR (%) 263.9062 2.70 1.38 3.19 4.28 Point to Point (INR)* 12,772 11,343 13,350 14,699

Period NAV Per Unit (Rs.) INFRABEES B:Nifty Infrastructure Index Nifty Infrastructure TR Index AB: Nifty 50 Index

Dec 31, 2015 to Dec 30, 2016 279.8998

• 1.72
• 2.05
• 0.88

3.01 Dec 31, 2014 to Dec 31, 2015 305.6505

• 8.42
• 8.91
• 7.58
• 4.06

Dec 31, 2013 to Dec 31, 2014 248.4875 23.00 22.71 24.18 31.39 Since Inception (September 29, 2010) CAGR (%) 373.2340

• 4.76
• 4.92
• 3.80

5.11 Point to Point (INR)* 7,370 7,294 7,845 13,663

Period NAV Per Unit (Rs.) SHARIABEES B:Nifty50 Shariah Index Nifty50 Shariah TR Index AB: Nifty 50 Index

Dec 31, 2015 to Dec 30, 2016 185.0634 3.25 3.02 4.28 3.01 Dec 31, 2014 to Dec 31, 2015 180.9406 2.28 2.23 3.28

• 4.06

Dec 31, 2013 to Dec 31, 2014 147.8366 24.06 23.55 25.41 31.39 Since Inception (March 18, 2009) CAGR (%) 65.9279 14.83 14.36 15.86 14.79 Point to Point (INR)* 29,378 28,443 31,497 29,291

R*Shares Shariah BeES (SHARIABEES) R*Shares PSU Bank BeES (PSUBNKBEES) R*Shares Infra BeES (INFRABEES)

NAV as on Dec 30, 2016: Rs 191.079 NAV as on Dec 30, 2016: Rs 275.0766 NAV as on Dec 30, 2016: Rs 331.2891

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Performance – Other Schemes Managed by Fund Manager contd.

Performance as on 30 Dec 2016 30

Common Disclaimer : *Based on current value of standard investment of Rs. 10,000 made at inception. Past performance may or may not be sustained in future and the same may not necessarily provide the basis for comparison with other investment. Since inception returns (wherever provided) is computed on Compounded Annualized Growth Returns (CAGR) basis. For Scheme(s) which has completed more than 3 years, point to point returns for twelve month periods for last 3 years is provided basis the last day of the calendar quarter and are computed on absolute basis. In case the scheme(s) which is in existence for more than 1 year but less than 3 years, point to point returns is provided for as many period as possible, such period being counted from the last day of the calendar quarter and are computed on absolute basis. Dividends (if any) are assumed to be reinvested at the prevailing NAV. Bonus (if any) declared has been adjusted. Performance of the scheme would be Net of Dividend distribution tax, if any. Face value of scheme is Rs. 10/- per unit. Face value of R*Shares Junior BeES is Rs. 1.25 per unit. Face value of R*Shares Gold BeES is Rs.100 per unit. In case, the start/end date of the concerned period is non-business day (NBD), the NAV of the previous date is considered for computation of returns. B: Benchmark, AB: Additional Benchmark, #TR Index - Total Returns Index reflects the returns on the index arising from (a) constituent stock price movements and (b) dividend receipts from constituent index stocks, thereby showing a true picture of returns.

Period NAV Per Unit (Rs.) HNGSNGBEE S B:Hang Seng Index Hang Seng TR Index (In Rs) AB: Nifty 50 Index

Dec 31, 2015 to Dec 30, 2016 2151.1494 5.40 0.39 6.93 3.01 Dec 31, 2014 to Dec 31, 2015 2154.5833

• 0.16
• 7.16

0.61

• 4.06

Dec 31, 2013 to Dec 31, 2014 2027.7812 6.25 1.28 7.47 31.39 Since Inception (March 9, 2010) CAGR (%) 1238.8917 9.27 0.54 10.34 7.18 Point to Point (INR)* 18,301 10,374 19,564 16,046

Period NAV Per Unit (Rs.) GOLDBEES B: Domestic Price of Gold AB: NA

Dec 31, 2015 to Dec 30, 2016 2319.8213 10.66 11.58 N.A. Dec 31, 2014 to Dec 31, 2015 2516.1857

• 7.80
• 7.13

N.A. Dec 31, 2013 to Dec 31, 2014 2495.0969 0.85

• 1.78

N.A. Since Inception (March 8, 2007) CAGR (%) 945.7631 10.70 11.67 N.A. Point to Point (INR)* 27,144 29,575 N.A.

R*Shares Hang Seng BeES (HNGSNGBEES) R*Shares Gold BeES (GOLDBEES)

NAV as on Dec 30, 2016: Rs 2567.1941 NAV as on Dec 30, 2016: Rs 2267.2864

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Product Label – Other Schemes Managed by Fund Manager

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Disclaimers

Scheme Specific Risk Factors: Risk relating to CPSE Securities - Since the CPSE companies are substantially owned by the GOI, the GOI may take actions with respect to the CPSE sector that may not be in the best interests of Unit holders. There can be no assurance that such incidents would not result in a fall in price of the underlying securities constituting the Nifty CPSE Index and correspondingly the NAV of the Scheme. Further trading volumes and settlement periods may restrict liquidity in equity and debt investments. Investment in Debt is subject to price, credit, and interest rate risk. The NAV of the Scheme may be affected, inter alia, by changes in the market conditions, interest rates, trading volumes, settlement periods and transfer procedures. The NAV may also be subjected to risk associated with tracking error, investment in derivatives or script lending as may be permissible by the Scheme Information Document (SID). For further details please refer SID BSE Disclaimer: It is to be distinctly understood that the permission given by BSE Ltd. should not in any ways be deemed or construed that the SID has been cleared or approved by BSE Ltd. nor does it certify the correctness or completeness of any of the contents of the

• SID. The investors are advised to refer to the SID for the full text of the Disclaimer clause of the BSE Ltd.

NSE Disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the SID has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the SID. The investors are advised to refer to the SID for the full text of the Disclaimer Clause of NSE Disclaimer by Index Provider

• a. The product i.e. CPSE ETF, is not sponsored, endorsed, sold or promoted by IISL. IISL does not make any representation or warranty,

express or implied to the Unit holders of any product or any member of the public regarding the advisability of investing in Securities generally or in any product particularly or the ability of Nifty CPSE Index to track general stock market performance in India. The relationship of IISL to Reliance Nippon Life Asset Management Limited (RNLAM) (formerly Reliance Capital Asset Management Limited) is only in respect of the licensing of certain trademarks and trade-names of their index, which is determined, composed and calculated by IISL without regard to RNLAM or any product. IISL has no obligation to take the needs of RNLAM or the Unit holders of the products into consideration in determining, composing or calculating Nifty CPSE Index. IISL is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the products to be issued or in the determination or calculation of the equation by which the products are to be converted into cash. IISL has no obligation or liability in connection with the administration or marketing or trading of the products.

• b. IISL does not guarantee the accuracy and/or the completeness of the Nifty CPSE Index or any data included therein and they shall have

no liability for any errors, omissions, or interruptions therein. IISL makes no warranty, express or implied, as to the results to be obtained by the RNLAM, Unit holders of the products or any other persons or entities from the use of the Nifty CPSE Index or any data included

• therein. IISL makes no express or implied warranties and expressly disclaim all warranties of merchantability or fitness for a particular

purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, in no event shall IISL have any liability for any special, punitive, indirect or consequential damages (including lost profits), even if notified of the possibility of such damages.

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Slide

Disclaimers

Disclaimers



The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. Certain factual and statistical information (historical as well as projected) pertaining to Industry and markets have been obtained from independent third- party sources, which are deemed to be reliable. It may be noted that since RNLAM has not independently verified the accuracy or authenticity of such information or data, or for that matter the reasonableness of the assumptions upon which such data and information has been processed or arrived at; RNLAM does not in any manner assures the accuracy or authenticity of such data and

• information. Some of the statements & assertions contained in these materials may reflect RNLAM’s views or opinions, which in turn

may have been formed on the basis of such data or information.



Before making any investments, the readers are advised to seek independent professional advice, verify the contents in order to arrive at an informed investment decision. None of the Sponsor, the Investment Manager, the Trustee, their respective directors, employees, affiliates or representatives shall be liable in any way for any direct, indirect, special, incidental, consequential, punitive

• r exemplary damages, including on account of lost profits arising from the information contained in this material.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

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Thank you